The US and China agree to a framework to restore a trade ceasefire

Today’s Agenda: US Inflation. UK Expense Review. la curfew; FT’s investigation into how smuggled fuel funds Mexican cartels

good morning. We start in London. There, the US and China agreed to a framework to restore a trade war ceasefire after two days of negotiations.

What we know: The breakthrough came late last night after the marathon spoke at the Lancaster House, which the UK offered as a neutral location. The US team included Treasury Secretary Scott Bescent and Commerce Secretary Howard Lutnick, while the Chinese delegation was led by his vice-president, his Lifeeng. China’s state media reported that both sides agreed to implement a consensus that reached the consensus over a phone call between US President Donald Trump and Chinese counterpart Xi Jinping. No further details about the framework are provided.

Why it matters: This framework will bring the country back to the ceasefire that we agreed to in Geneva last month. This was extremely upset after accusing them of violating each other of important goods such as rare earths and semiconductors. The Armistice reduced each tariff by 115 percentage points and provided a 90-day window to resolve the trade war. Prior to the first round of talks in Switzerland, Bescent had warned that high levels of mutual tariffs had reached an effective embargo on bilateral trade.

The two teams present a contract to their respective leaders. Learn more about this latest development in the trade war here.

Emerging Markets: Trump’s trade war will curb growth in almost two-thirds of developing countries this year, the World Bank warns.

Global Economy: The Tariff War brings about unpredictability and the resulting loss of confidence, writes Martin Wolf.

EU-CHINA Trade: Brussels imposed an anti-dumping obligation on Chinese plywood imports a few days after Beijing tried to ease trade tensions.

Here is the other thing we keep tabs today:

US Inflation: The figures released today are expected to show accelerating consumer prices growth last month.

UK Expense Review: Rachel Reeves places a £390 billion “affordable housing” plan at the heart of her multi-year review, but it is estimated that the prime minister’s spending will soon be forced to raise taxes.

Donald Task: Polish prime minister faces a trusting vote after the candidate lost this month’s presidential election.

Brussels Forum: EU chief diplomat Kahakalas will be chatting with FT’s Henry Foy. For more analysis from Director Brussels, please sign up for the European Express Newsletter (Premium).

Five more top stories

1. Government forecasts show that US oil production will decline for the first time next year. The report highlights the stress the sector is facing as increased supply from the OPEC+ cartels and Trump’s trade war unrest pushed oil prices down.

2. Exclusive: European banks have spent more than 1.1 billion euros on senior staff x since 2018, according to FT analysis, 2,100 material risk takers are shared among seven major lenders. The payments worth around 540,000 euros per bank highlight the scope of restructuring that the industry has received in recent years.

3. The Mayor of Los Angeles has announced a downtown area curfew that has been the center of a four-day protest marked by a conflict between police and vandalism. The move comes as Trump defended his move to deploy hundreds of Marines and vowed to “liberate” California’s biggest city.

“Inside the Enemy”: Trump’s recent move is the clearest step in his administration, and still the clearest step against authoritarianism, Edward Ruth writes.

4. Exclusive: Scania wants to form a consortium to purchase Northvolt research labs to retain the expertise of key European batteries, said the boss of the Swedish trucking company. Christian Levin told FT that Scania is in talks with the Swedish government and the European Commission, adding that the R&D unit has the smartest researchers in Europe and has “great value.”

5. Meta will invest around $15 billion in Data Label startup AI, and will employ the group’s co-founders and top researchers in one of its kind. The deal gives Meta a 49% stake and values ​​the startup of about $28 billion, according to people with knowledge of the issue. It could be announced soon today.

Snap’s “Specifications”: Social media companies are planning to reboot their smart glasses to rejoin the costly battle with AI-powered wearable devices in Meta, Openai and Apple.

Visual investigation

In March, Mexican authorities seized a 46,000 tonne of vessel suspected of illegally importing fuel from the United States. Subsequent raids on nearby storage facilities discovered weapons, tanker trucks and 100,000 liters of diesel. However, this was not an isolated case. FT has discovered dozens of suspicious shipments, and millions of barrels of fuel have been mistakenly declared as industrial lubricants. Our latest visual research explores how sophisticated smuggling operations are based on Mexican cartels.

We’re reading too. . .

CEO wages and perks: While executives may find the idea that there is less idea that packages are unattractive, this carries its own risks, writes Brooke Master.

AI-powered drones: Ukrainian attacks on Russian airfields were carried out by quadcopters that could continue flying even after losing the signal.

WPP: The resigning chief mark lead has been pushed to employ AI, but for the ad agency that bills some clients every hour, the business disruption of its own still has investors.

Mathgpt: The new AI model could soon pose a threat to the world’s top mathematicians, writes Anjana Ahuja.

The chart of the day

Private market funds are below large US stocks for the first time in nearly a quarter of a century, as slower private equity trading activities prevent sector returns.

Take a break from the news

When Nadya Tolokonnikova launched her 10-day performance work at the Museum of Contemporary Art in Los Angeles last week, she couldn’t immediately know that the city would plunge into anxiety. “They always choose scapegoats,” a founding member of Pussy Riot tells FT. “In Russia, it’s the people who oppose the regime. In America and Los Angeles, that’s immigration.”